Shanghai Dazhong Public Utilities (Group) Co., Ltd. (DZUG) announced that its 55%-owned subsidiary, Shanghai Dazhong Financial Leasing, signed two related agreements on 29 April 2026 with the group’s largest shareholder, Shanghai Dazhong Business Management.

• Title Transfer Agreement – Assets: 329 Roewe Ei5 pure electric taxis and their corresponding taxi operating licences. – Consideration: RMB59.00 million, to be paid within five business days after contractual conditions are met, including receipt of a RMB5.90 million deposit and a RMB1.24 million handling fee from the transferor. – Valuation: Independent valuer Shanghai Zhonghua Asset Evaluation Co. appraised the assets at RMB64.86 million (vehicles RMB42.79 million; licences RMB52.25 million), materially above the RMB11.48 million net book value. The appraisal combined cost and income approaches.

• Finance Leasing Contract – Leaseback of the same assets to Dazhong Business Management for 36 months. – Total rental payment: RMB63.45 million, based on a 4.55% annual rental rate plus a one-off handling fee of RMB1.24 million. – Payment schedule: 12 quarterly instalments; maximum annual cap set at RMB22.39 million.

Regulatory treatment: Both the asset purchase and leaseback constitute connected transactions under Chapter 14A of the Hong Kong Listing Rules. With the highest applicable percentage ratios below 5%, the deals require announcement and reporting but are exempt from independent shareholders’ approval.

Board review: Executive directors Mr. Yang Guoping and Mr. Liang Jiawei, also directors of Dazhong Business Management, abstained from voting. The remaining directors, including all independent non-executive directors, consider the terms fair, reasonable and in the interests of DZUG and its shareholders.

Strategic rationale: Management expects the transaction to expand the leasing subsidiary’s asset base, secure stable rental income and carry limited risk given the lessee’s credit profile.